Marketing Opportunities for Launching Toyota Fortuner in Malaysia

Marketing

Table of contents
1.0 Introduction and Purpose of this report 5
2.0 The Malaysian automobile market 5
2.1 Size of the market and market segments 5
2.2 Key players and their Market Share 5
2.3 The SUV market segment 6
3.0 The Toyota Factory 6
3.1 Brief History 6
3.2 Toyota's Marketing Strategy 7
3.3 Toyota's Performance (In General) 7
3.4 Toyota's Performance in the SUV Segment 7
4.0 The Malaysian Automobile Marketing Environment 7
4.1 Law and Policies 7
4.2 The Social and Cultural factor impact 8
4.3 Economic Factor Impact 9
4.4 The Technological factor Impact 10
4.5 The Environmental factor Impact 11
4.6 Overall conclusion from this analysis and its impact on Toyota150 12
5.0 The Competitive Environment 12
5.1 The intensity of existing rivalry 12
5.2 The threat of new entrants 13
5.3 The Bargaining power of Buyers 13
5.4 The Threat from Substitutes 13
5.5 The Threat from Suppliers 13

5.6 Overall conclusion from this Analysis and its impact on Toyota 13
Figure 1: Porter 5 force analysis 14
6.0 The KSF Factor in the SUV Market 14
6.1 Key Success Factors 14
6.2 KSF factors for the Toyota Fortuner 15
6.3 Conclusion of this Analysis 15
7.0 A Competitive Analysis of the Toyota Fortuner 15
7.1 Competitive Analysis 15
7.2 Conclusion of the Analysis 16
8.0 The Role of Market Research 16
8.1 Proposed Marketing Research Strategy 16
8.2 Expected Findings from the Research 16
9.0 The Proposed Marketing Strategy for the Fortuner 16
9.1 Summary of the SUV Market Environment 16
9.2 The objectives for 2019 and 2020 16
9.3 The Target Market Segment 17
9.4 Profile of the target buyer 17
9.5 Packing Value proposition 17
9.6 Promoting the Fortuner Brand 17
9.6.1 Positioning the Fortuner Brand 17
9.6.2 Creating a Tagline 17
9.7 Service Factor 17
9.8 The Place Factor 17
9.9 The people factor 18
10.0 Strategic Control 18

11.0 Conclusion 18
References 19
Appendices 22

1.0 Purpose of this report
The purpose of this report is to the implementation of market opportunity to launch the new 2020
version of the company's flagship Sports Utility Vehicle the Toyota Fortuner in the country of
Malaysia. The Report will be helpful in understanding the automobile market of Malaysia and
understand the particular segment of sport utility vehicles and its particulars in order to
implement the most suitable strategy that will utilise the market condition to its fullest. The
report will elaborate on the history of the company to understand its previous policies and
marketing strategies to understand past trends and accentuate on future strategies. The report will
also provide an understanding of the national market scenario of Malaysia, its competitive
environment, and the market conditions of the particular segment of SUVs particularly the mid-
range flagship devices.
2.0 The Malaysian automobile market
2.1 Size of the market and market segments
The Malaysian automobile market consists of 27 vehicle producing companies (Marii.my, 2019).
It has the third largest automotive industry in Southeast Asia and the 25th largest in the world
with over 500,000 vehicles being produced annually. The industry contributes up to 4% of the
country’s GDP. It employs over 700,000 personnel for its workforce and creates a nationwide
ecosystem (Yoshida and Kojima, 2015). With the wish to make the local carmakers the proton
and Perodua internationally competitive, the governments of the country does not make ample
changes for the more open segment in the automobiles market for the industry.
2.2 Key players and their Market Share
Year Brand Market share
2018 Perodua 42%
2018 Proton 29%
2018 Toyota 9.8%
2018 Honda 17.2%
2018 Nissan 3.2%
2018 Mitsubishi 1.7%
2018 Naza <1%
2018 Suzuki <1%
2018 Isuzu <1%
Figure: Market share of key players

(Source: Toyotaeconomics.weebly.com, 2019)
The market trend of the Malaysian automobile industry is in terms of having middle-class
people. People in Malaysia wishes to have one or more cars, but their first car is always stable
within their comfort zone of affordability. Proton in the market of Malaysia has not done well in
recent days due to the protectionist format of government presented. However, there are
International brands operating in Malaysia due to their range of affability as well as luxury. Few
of the market players in the automobile industry of Malaysia are as follows:
Honda procures 17.2% of the sales volume of passenger vehicles in Malaysia from the year in
2018. Proton had 29% of sales volume. Nissan holds 3.2%, Mitsubishi and Naza hold 1.7% share
and <1%. Isuzu and Suzuki hold <1% each. However, the market is led and controlled mostly by
Perodua over with that 42% plus volume as seen in 2018 (Toyotaeconomics.weebly.com, 2019).
2.3 The SUV market segment
The market segment of SUV in Malaysia is diverse into companies like Perodua BMW, Mazda,
Peugeot, Naza, Lexus, Mitsubishi, Honda, Toyota, Ford, Hyundai and Kia.
The organisation KIA presented its new SUV the KIA Cerato. They have become a major
competitor for every international brand automobiles in Malaysia with their very first intelligent
variable transmission designed for addressing a rubber band like the feeling of a continuously
variable transmission system. Toyota has come up with their VVTI 4 cylinder petrol engine with
1.5-litre dual Sporting version As Toyota Vios (Carsifu.my, 2019). However, the car only does
come with CVT that somehow is inferior to the product KIA is presenting. In order to make sure
that Toyota Fortuner gains a significant amount of success or have opportunity to lay their
foothold strong in the Malaysian automobile industry or market, they have to come up with even
more statistically advanced features along with proper affordability Support to the middle-class
people of Malaysia.
3.0 The Toyota Factory
3.1 Brief History
In Malaysia, Toyota distributor was strictly provided to UMW Toyota Motor Sdn. Bhd.
(UMWT). They were the only distributor, assembler and exporter of Toyota vehicles in
Malaysia. It was founded in 1982 October as Sejati Motors which was then renamed to UMW
Toyota Motors in October of 1987. There is a huge plan in execution related to the expansion of